Some years ago, the organization I worked for, hosted a workshop in Ethiopia, for teams from several countries, including Ethiopia. The Ethiopia team, of which I was a member, was assigned to host and organize the workshop. We decided to include a less formal agenda in between all the presentations, group work and plenary sessions. As all participating countries happened to produce coffee, we decided to organize a coffee tasting competition. Each team was to bring coffee from their country, display it, brew it and prepare it for tasting by an independent jury.
The competition was planned for the evening of the first day of the workshop and promised to be an exciting ice breaker. Participants were already boasting about the quality of their nation’s coffee, not in the least the Ethiopians, who reminded all that coffee originated from Ethiopia after all.
As the afternoon progressed, packaged export quality coffee from the other countries was already brought to the meeting room and it is then that the Ethiopia team began thinking about preparing for the competition. They had not brought any coffee yet as they were confident that the coffee they needed could be bought from any shop nearby the venue of the workshop. Two members of the team were sent to purchase one kilo of coffee. There were no supermarkets nearby, only small shops, who sold green beans amongst everything else that is normally sold in small suks. There was no choice and neither did the purchasers know much about what good quality green coffee beans should look like. So, they bought a kilo of whatever coffee beans were available and brought it back to the hotel, together with some charcoal and incense. When the time of the competition was approaching, the Ethiopian coffee ceremony was well underway, and the team was confident they would win! What could possibly go wrong?
The other teams now began brewing their coffee as well, and the meeting hall was soon filled with a mixture of coffee aroma’s, drawing the attention from hotel workers, management and other guests.
Members of the jury were now invited to taste the coffee, much like experts taste wine: smelling, taking a sip, tasting, spitting it out, and on to the next cup. Results were written on individual scorecards and added to arrive at the final result. The Ethiopian coffee ended last! What went wrong? Well, in the first place, the competition was about the quality of the coffee, not the ceremony! In other words, the team did not focus on the actual assignment, on what was exactly expected. And as a result, too much attention was paid to secondary elements and too little attention was paid to the preparations and requirements for a good result. Also, the team underestimated the capacity of the other teams, the competition, who had done their homework well and were prepared to give it their best. The Ethiopia team instead was ill prepared, relied on their routine and were not effective in their execution.
Let us take this conclusion a bit further to corporate effectiveness.
For any team, organization or company to be effective it is important that mission, goals and values are shared and internalised by all staff and time and energy needs to be invested in this by management. But this is not all that needs to be done. Subscribing to the corporate values helps but is not enough to become effective. To be effective requires being proactive and that is what most people are not, also not in Ethiopia. Most of us are reactive. We react to what is coming our way. We don’t plan-ahead and blame others for things gone wrong. We say: “I don’t have time.” We are busy repairing the damage that has been done and we are constantly in the crisis management mode.
Proactive people on the other hand plan-ahead and take responsibility. They say: “How can I help?” They prevent problems from happening and set the right priorities. Reactive people allow circumstances to dictate their agenda while proactive people set the agenda. And they do that using their personal values as a point of departure. To take it a step further still, for employees to be effective in their work it is important that there is a match between their personal and the corporate values. Where there is no such match, workers will not make significant contributions to corporate effectiveness.
Yes, somebody with an accounting diploma or degree can work in any company or organization. But whether or not (s)he will make significant effective contributions depends on how excited that accountant is about the products that the company makes and in how far (s)he subscribes to the corporate values. If, “high quality” is one of the corporate values then delivering high quality and timely financial reports to management will be expected. If a company claims that it esteems its customers, then the sales-reps are expected to be polite and give competent advice to the clients.
In conclusion I’d like to suggest that next time you need to hire somebody, you take values and potential to be proactive into consideration. And for those who want to become more proactive in their work, complete the following exercise:
Define your personal values.
Do they match the corporate values?
What can you do to increase the match between your personal and the corporate values?
In which areas of your work can you become more proactive and thus more effective?
Write this down and share with management.
Agree on a time frame to evaluate progress.
Ton Haverkort
Becoming proactive
Boeing Releases 2022 Sustainability Report, Maps Sustainable Aerospace Progress
Boeing released its annual Sustainability Report, which further defines the company’s sustainability goals and includes key metrics to measure progress of core enterprise priorities. This includes employee safety and well-being; global aerospace safety; equity, diversity and inclusion; sustainable operations; innovation and clean technologies; and community engagement.
In addition, the report highlights the company’s 2021 sustainability achievements, its sustainable vision for the future of flight, and environmental, social and governance (ESG) efforts in alignment with global sustainability standards.
“We are honored to release our second sustainability report that builds on Boeing’s family of reports already released this year and shares how our collective ESG efforts are contributing to our business and world,” said Chief Sustainability Officer Chris Raymond. “The report is an important step in demonstrating our ambition to communicate transparently with all of our stakeholders, and in holding ourselves accountable as we protect, connect and explore our world safely and sustainably.”
Mending the logistics sectors hitch
By Fanta Tadesse
As majority of global trade transported by sea, ports become critical gateway infrastructure which connects an entire nation with its inland transportation network; roads and rails. In Ethiopian context, a land locked, dry ports (inland ports) are playing significant role in connecting neighboring sea ports with inland markets. The dry ports (inland ports) are usually use as a feeder to the nearby markets. Hence, developing strong, logistics and transport infrastructure connecting sea ports with inland ports and inland ports with nearby markets are key element for economic growth. Furthermore, the spillover effect of logistics sector service on GDP is in fact significant.
Currently Ethiopia’s global logistic ranking index stands at 124th which mean is low at any standard. This demonstrates Ethiopia’s weak and in – efficient logistics service. Which has significantly played a part in rising local price of commodities direct impact of logistics cost. In most case the blame for the poor performance goes to cov’d 19, and more recently to Russia – Ukraine war. But there are many more basic facts that should be managed by the country policy makers. Outsourcing the setbacks fully on external factors will never bear fruit rather it distances solutions.
The role ports play extends beyond a nation, and influences a neighboring country as well. Specifically sea ports have a very important effect on the activities of neighboring landlocked countries. Efficient performances of ports, as well as their whole logistic supply chain, determine how expensive or reasonable their services are to landlocked countries. High transit costs, which may include monetary costs, or costs in time, may ultimately stifle trading activities of landlocked countries, something that will negatively affect their economic development. This is illustrated by the disparity in trade volumes (60% lower) and transportation costs (50% higher) in landlocked countries than in port hosting nations (UNCTAD, 2003b).
To compensate for the huge influence of sea port harboring nation’s incursion of cost on logistics service, Ethiopia should invest much to modernize its infrastructure. For a land-locked country like Ethiopia modernizing physical infrastructure and creating favorable conditions is not a matter of choice it is a must do business, if the nation needs to be competitive in global market and make its local market competitive enough for the benefits of its people.
Infrastructure
The line share of Ethiopian bulk is transported from neighboring countries seaport by land transport. Although, Ethiopia is striving to improve road infrastructure with in its border of cross country roads it also takes the dedication and good will of countries at the opposite sides which are in fact sea harboring nations, to make the road infrastructure favorable and contribute positively to the economy. With no doubt Working on logistics hard infrastructure will improve the overall logistic service. In fact for more efficiency, productive and effective transportation equipment are also a must, this will significantly reduce lead-time subsequently costs of logistics.
Although physical infrastructure plays a vital role in improving the logistics sector service, setting and implementing an encouraging policy even contributes much higher part. The government shall contribute positively for the improvement of the sector through huge investment and facilitation. But is it unimaginable for the government alone to secure success in improving logistics sector.
Motivating Policy
Apart from improving physical infrastructure, policy implementation is crucial matters as well. Years have gone-by since Ethiopia has adapted a free market economy. The recent structural reforms such as (privatization, reduction of government expenditures and devaluation) may seem the economic reform is getting deep rooted. This Principle should apply to all sectors with firm binding regulation. Allowing the active participation of private or private public partnership in the logistics sectors including participation of private firms in port service may make the logistic sector more competitive. Though, it is unwise to think privatization alone will be a sole solution maker for all the logistic sector hiccups, it is an eye-opener and a great milestone to bring the much needed improvement. To make the process complete and successful the action shall be accompanied by strong binding legal frame work.
Why Privatization
Privatization which literally means, the process aimed at shifting functions and responsibilities, in whole or in part, from the government to the private sector, can stimulate the logistic sector. The main reason for privatization is the search for efficiency in management and operations through reduction in operational costs, improvement and development of port services and facilities (D. Song et al., 2001a). In a bid to achieve this, various privatization strategies usually result in an injection of capital, technology and managerial resources and expertise.
Talking of inland ports in their current role as key connections in the inland ports logistic supply chain, it would imply that their efficiency definitely affect the performance of businesses in the rest of the system. Private sector ports in many parts of the world have proved that they are more productive especially when it comes to efficient use of resource in comparison to inputs for the intended service. Private firms produce more goods or services in relation to the amount of materials and employees needed even with less competitive advantage as compared to public owned firms.
In aspiration for better customer satisfaction private firms have demonstrate more success story than public sector in delivering service more effectively. Extended lead time of importable and exportable goods are the main challenges of the local traders this time. With less bureaucratic chain of command the private firms are more favorable partner to work with for commercial entrepreneurs. Apart from these reliability matter may also need strong attention that can fairly treated in private sector with clear responsibility taker.
Again form marketing perspective competition is one way to secure customer satisfaction by providing better service / product, and cost effective product and service. Monopoly has never proved success and efficiency in most service. Advocators of privatization in fact devote every success story to private firms through competitors.
For private firms to remain active in the market they should undergo a continuous improvement in service/product they deliver. In order to survive the severe completion private firms are much willing to undergo continuous improvement. For private firms endure competition they must consistently undergo changes in adapting themselves to the very latest state of art in operation and introduce new technologies in their business, subsequently stimulate local economy, development and modernization.
The performance of private firms in selected logistics service sector-custom clearance and unimodal freight forwarding service – in Ethiopia have demonstrated good success story . Thus this is a prove that private firms will deliver better if not the best service comparatively if given the opportunity.
From the above realities, though privatization may improve port performance and competitiveness a balance should always exist between public and private sectors (Tongzon & Heng, 2005). But for the private firms to take the risk of huge investment support from the public sector is a must.
On the other hand among the advantages of publics’ ownership, state monopoly, is a source of prestige for the society. Although, it is irrational from business point of view, resource utilization in public ownership firm is unfair. However ,the public sector practices of recruiting more people in the public company, as it is seen everywhere in public sector, that increase business running cost, through over employment, is also seen as an advantage to minimize unemployment in the country. Yet this results in inefficiency and persistent labor under productivity. On top of these public owned firms face challenges among other divided interests, i.e. commercial interests as against the multiplicity of governments’ interests such as employment, political interests. – Nationalistic or local view to strategizing port improvement programmes rather than a global view which fits in with changing times (Baird, 2002).
In the recent history of Ethiopia the transfer of public firm to private firms face significant challenges, from lack of transparence to less productivity of the transferred firms. A privatized firm doom to frailer mean it put barrier and minimizes trust between the public and private sector. Transparency and offering support for the private firms contribute in successful management of the entire privatization policy. The successes of privatization and increment in productivity of privatization firms will help build trust of society at large even diminish resists to transfer of firms from public to private sector.
I believe that privatization is not a sole cure to all challenges faced in the sector. But current state monopoly takes longer and lags improvement this nation aspires for: effective and efficient logistics service that positively contributes to the economy. Thus for better dynamism and smooth adaptation middle ground between the private and public organizational structures will brings better benefits that can satisfy both the private sectors commercialism and the public sectors broader social economic drive. Through reform and strategic thinking it is possible to allow private firms participation in selected service and in manageable ways, in order to convince the general public this can be achievable.
One way is through lease or management contracts: in this approach normally no transfer of ownership of assets. Private sector management, on some agreed up on business, technology and skills are provided for a period for a fee (compensation). For instance, allocation of revenue – the inland ports primary source of revenue is the charges imposed on port users and depends on the actual throughput volume. Often, under a concession arrangement, the private operator pay a concession fee to the public authority and deliver service and collects the port user charges. In fact there are different models to be used to allow private sectors participations in port service. It only takes through thinking and clear objective to choose which to use among the alternatives.
The writer can be reached via fantahun970@gmail.com
Afreximbank welcomes Algeria as its 52nd Member State
African Export-Import Bank (Afreximbank) has announced that The People’s Democratic Republic of Algeria (Algeria) has joined the Bank as a Member State. That brings the membership of Afreximbank to 52 out of the 55 African Union member States.
Algeria’s accession to the agreement establishing Afreximbank was formalised on 8 June 2022 by Presidential Decree No. 22-212. The subscription of the country to the shares of Afreximbank as part of its membership in the institution was also authorised by Presidential Decree n°22-222 of 14 June 2022. Algeria becomes a Class A shareholder in the Bank and will be represented by the Algerian Ministry of Finance.
Algeria has the 9th largest population and the 4th largest economy in Africa. It is also a member of the African Union, the African Continental Free Trade Area (AfCFTA) and the Greater Arab Trade Area.
The number of Afreximbank Member States rose from 38 in 2015 to 51 in 2021. With Algeria’s accession, the Bank is only 3 States short of achieving full continental coverage.
