The Lecture
>> Saturday, June 27, 2009
I'm really sorry for not attending your class for the past few days . My throat was sore, my eyes were dry..but please don't be afraid, it's not swine flu. It's just the side effects of too much crying for the past fortnight..
Ok, what I gotta teach y'all today huh? Hurm, how about Business Management? What? Oh, I know this subject was not even in your syllabus yesterday, but what can I do? The government has just changed its policy yesterday..hahaha. So be it. As I'm waiting for the highest bid of commission from the textbook supplier, I'll take my materials from this website.
Sri, can u gimme a name of a company that nearly collapse because of bad management habit so I can make an anecdotal example? What? Agni Inc.? Good Sri, I've known for a long time that you are a bright student. According to the website, there are 6 tips to good business management.
First, please bear in your mind kids, even you are an expert in your field, that doesn’t mean that you have what it takes to be a business owner. In Agni's case, it's even worse. Let me read you the CEO's profile:
Sri Lingham, holds a doctorate in Electrical Engineering and is a member of the Institute of Electrical Engineers. Dr. Lingham spent 10 years in Investment Banking in the UK, Hong Kong and the US with HSBC, Merrill Lynch and GMAC. He had started investing in the Fuel Cell and Alternative Energy industry in the 90s and left Investment Banking to drive Agni Inc in 2002, with overall responsibility for execution and technology development. Dr. Lingham holds patents and visiting lectureships.
from http://www.agni-inc.com/mngmt.php
He has never worked as an engineer when he started the business and suddenly he became Mr. Know-All. Do you get what I mean?
The second point, hire the right peoples. You cannot ask a History teacher to teach Science to the students. He will teach you, but he will be unsure on what he's teaching. In Agni's case, Sri Lingham appointed managers who didn't have the experience handling power generation project. The engineers were not well-trained on the right standard of piping, heat exchangers, and pressure vessels design. I'm not blaming the managers and engineers, but I'm blaming the CEO, because he didn't ask for experts' opinion when he was starting the company. Someday, some of you will work as engineers and that time, you will know how tight is the regulations for oil and gas, power plants, and refineries. You will need vast experience to get involved in these projects. Training in this field is compulsory to avoid poor design thus tragedy.
According to the web, a business owner shouldn't appoint his relatives and friends to important designations in the company. Why? You should be professional enough to manage a company. In Agni's case, mother of the CEO controlled all finance matters, vendor payments, employees' salary, etc. Do you know kids, the workers had to queue up outside her room to collect their cheques? I think the CEO realized that what her mother was doing was not helping the company at all, but due to his respect to his mother he just zipped his lip off. Y'all should check this website for more classic results of hiring friends and families.
We continue to the next reminder of the website. Don't make snap decisions, planning strategy is everything. Lemme give y'all a question. Are you willing to spend millions of ringgit on something without considering various aspects? That's another problem of Agni Inc. The CEO always made hasty decisions, whether it's project decision, or company management decision. Kids, let me remind you, making a management decision is not the same with making decision of which clothe you should wear, it involve a lot of parties and cost.
Oh! The bell has rung, luckily..hehe. Maybe I'll continue with the other two tips next week, if the government doesn't change its policy..haha. Or maybe I'll teach something new to you. So kids, see you next week!