UTK - Managing the uncertainty Strategic Management and Business Policy Toward Global Sustainability
Dear All,
On 2-3 July ,2018 , Dr.Chira was invited to be the lecturer at International College University of Technology Krungthep at the "Share Learning" event that will have participants of approximately 38 postgraduate students from Faculty of Economic and Business, University of Singaperbangsa Karawang -Indonesia.
Dr.Chira open this blog for students and others to share idea ,to inspire and to be part of creating learning community together.
Managing the uncertainty Strategic Management and Business Policy Toward Global Sustainability
By Prof. Dr. Chira Hongladarom
Secretary – General
Foundation for International Human Resource Development (FIHRD)
And President of Chira Academy
(Summarize by Chira Academy's team academic)
July 3,2018
Dr.Chira admire Indonesia very much because this country so many island many population and also have Muslim as Thailand
3 Subjects before learn together
1. Learning how to learn – to teach how to think by yourself and because knowledge in the world are so much.
2R’s Remember few thing that reality and relevant to you
2. Curiosity
- Study alone is not enough
- Whatever you think about learning try to learn new things.
Think what is good
Listen what Dr.Chira and Think about what is good for yourself, your country , and what you can apply in the world.
3. Hungry
- Hungry for more learning , Reading is so important
Learning in 3 subjects and getting to know the relationship between Thailand-Indonesia
1. Cooperation such as
- Agriculture
- Tourism
- Import/Export such as Mining import
- Transportation such as Airline Medan – HatYai
Managing Uncertainty
Beginning Workshop : 3 Minutes
1. Discuss and Share each other
Why we study in this subject? / Why this subject is interesting to you?
- Think creatively and share among person in group
Group 4 :
Human Resource is important in Indonesia. To Mix in culture and tourism
What aspect of uncertainty in human resource ?
Human Resource is one of the most important in business. The name is Trust because trust is basically to reduce uncertainty.
Dr.Chira : Human Resource is one of the quality of people when you high them
Group 2 :
Indonesia have many problem because the right man can’t working in right place so there are many turn over in Indonesia
Group 3 :
Attitude is the mental aspect and part of uncertainty and how to improve is to turn negative in to positive
Group 5:
Because we don’t know about problem , competition , Globalization in the world . We should not complete only so we have to work together.
4L’s
1. Learning Methodology – Develop learning by yourself
2. Learning Environment- Happy learning
3. Learning Opportunity – Share idea with the speaker and other in group /class.
4. Learning Community
Whatever you learn because you enjoy and want to learn more and more .
2R’s
1. Reality – Apply in the reality , What is benefit to you?
2. Relevance – What is important to you ?
Why is important in this class?
- Look at yourself
- Apply yourself in Indonesia
- What kind of strategy ? What kind of your approach?
2 i’s
- Inspiration – Make your feel special.
- Imagination- Thinking about new thing all the time . Imagination come before creativity .
3 V’s
1. Value Added
2. Value Creation
3. Value Diversity – We’re different people , we generate diversity and this is the key of Indonesia
- The country of island and many diversity
- When come to Thailand , you have to learn something together such as culture, religion, food
3 L’s
- Learning from pain - Don’t expect life is all success , life is so fast , Life should be how to deal with pain. Learning from pain , make your mindset strong
2. Learning from experiences - Old people has experiences and wisdom , Keep advice with grandfather and grandmother if they still a life.
3. Learning from listening – Learning is ability to listen different idea such as different generation. Listen to people , give time for people to talk to you.
C & E Theory
- Connecting
- Engaging
Discussion : 2 minutes discuss in each group : What do you think Dr.Chira’s concept is impact to you?
Group 2 : Interest in 2 I’s Concept because this concept important for people especially in education and for each person to inspire to think and do something better.
Group 1 : Interest in 3V’s- Value Diversity because Indonesia different in Thailand such as language and there are many group and different in Indonesia can Create new concept as 2B’s –Behavior and Brave to chance in opportunity and who overcome the business should have brave or courage
Group 4 : Interest in 3L’s – is big influence on ourselves because this important and learn a lot from pain , experience, and listening
Group 3 : Interest in 3L’s – because in Indonesia there’re a lot employee can’t learn from pain / failure
Group 5 : Interest in C&E Theory
Connection – In Indonesia has new business to have to link with others. And can adjust in any area.
8K’s Theory : basic in Human Resource Development
1. Human Capital
2. Ethical Capital
3. Intellectual Capital
4. Happiness Capital
5. Social Capital
6. Sustainability Capital
7. Digital Capital
8. Talented Capital
5K’s (New) Theory
1. Creativity Capital
2. Knowledge Capital
3. Innovation Capital
4. Cultural Capital
5. Emotional Capital
HRDS : For People Management & Effective Teamwork
- Happiness
- Sustainability
2. Respect
3. Dignity
Managing the uncertainty
(1) Quotations
In business and economics what is certain is uncertainty.
(2) Xi Jinping said, we live in the world of 3 situations;
- Fast
- Uncertain
- Unpredictable
(3) Fast is the speed of change, we know what is happening but happen fast, such as the Central Bank decider to raise interest every month instead of every six month.
(4) Uncertain – we know what happens. We do not know how it is going to happen, sometime happen fast sometime happen slow so we must plan different scenario to deal with it.
Like simulation training of pilot dealing with turbulence of weather.
Most people think that uncertainty is the same as risk. But according to famous economist, Frank Knight said “it is not the same because uncertainty can lead to new opportunities, new business or even lead to innovation.”
The key is to understand all three what are the differences but I will only deal with uncertainty to-day in the context of business and economic uncertainty.
Innovation 2 things
1. Product Innovation
such as Service Innovation, Product Innovation , Social Innovation
2. Process Innovation
- If you manage well uncertainty , you can manage income lost.
3 Step for Innovation
1. New Idea
2. Creativity
3. New Knowledge
Who are the customer ? What is the kind of the production function?
2. Turn Idea into Innovation : First is do action plan
3. Benefit to customer
Impact maybe not money such as Social innovation will need impact to society
The Key is how to deal with uncertainty
Such as if you expect income for next month but income doesn’t come in next month , What will you do?
Don’t expect whatever you think , there’re many that you don’t know can occur
Another example The crisis of Tom Yum Kung expand into other what do you take any risk into manage. Be careful to think about the future : Certain, Uncertain, Unpredictable . How can you survive? Because you don’t know what will be happen in the future?
5) How do we manage uncertainty? – The Key isn’t greedy.
(5.1) Prepare different scenario and look for the worse scenario whether your company can survive. For example, if money from the project is late can you have reserve to survive for that period.
(5.2) Do not work alone, CEO and team and Stakeholders must combine effort to deal with uncertainty so teamwork is very important.
Your life will full of up and down , uncertainty in your life , you could create opportunities in the future. Opportunities are happen all the time.
(5.3) The whole management team use agility skill to deal with negative or positive aspect of uncertainty, opportunities, such as you receive new project because the previous company withdraws, so new opportunities arise, you must be ready for it.
Prepare, prepare and prepare leadership is important in the uncertain world and leadership must not be command and control type but involve everybody and break all the silos.
Agility Shift
1. Relevant
2. Responsive
3. Resilient
4. Resourceful
5. Reflective
How to strong to deal with Change
Interactive Components of High-Performance Organizations
1. Leadership Approach
2. Strategic Approach
3. Customer Approach such as discover new customer/Blue Ocean
4. Process & Structure – not work in silo / Work across silo
5. Values & Beliefs - Generate core value in uncertainty that you can survive in future
Powered by Change
If you face uncertainty , look at your purpose and upgrade go to another level for premium product and then you will elevate your company in high value
Smart Organization (Prof.Dr.Chira Hongladarom’s View)
1. Continued learning – Intangible qualities
2. Value creation culture
3. System thinking
4. Embracing uncertainty
5. Open Information flow
6. Discipline decision making
7. Alignment and empowerment – give them opportunity to do work
Workshop
1. Chairman – Ask everybody to share idea, not command and control people , use 4L’s and learn to listen , not expect other to listen only you.
2. Secretary – Short down to the main point
Learn – Share - Care
: 12 Rules of Chira’s Way Workshop Process
- Group members select a qualified member to lead the group as the chairman.
- Group members select a member who can be secretary and summarize the discussion result and take notes.
- The chairman explains the topics for clarity and make sure everybody understand.
- The chairman manages time for discussion.
- The chairman cares for every member and studies every member’s strengths and capability.
- The chairman stimulates every member’s participation, make sure each can participate.
- The chairman creates an environment to promote every member to feel safe to discuss with respect and dignity.
- The chairman creates a safe environment for everyone to speak out politely without fear.
- The chairman fills in the gap of discussion, stimulates and creates inspiration to members.
- The secretary summarizes and prepares a presentation.
- The group select the members with leadership skills to present the workshop results.
- There should be at least 3 presenters to promote Value Diversity
Workshop (1) (for every group) 30 minutes
1. Give real example of business uncertainty in Indonesia;
- Positive
- Negative
2) What are the 3 important management tools to deal with business uncertainty in Indonesia? Explain to HPO
Group 4
Project : Kedai Maharaj (Restaurant & Cafe’)
Maharaj is the pioneer of the india restaurant in Karawang City.
Positive
- Pioneer India’s food
- for India’s export in Karawang
- for customer who lover to have a new place for hang out
Negative
- Not all citizen in Karawang like India’s food
- this location only in center of Karawang , don’t have branch
Strategy
- 3L’s Learning from pain, experiences , and listening
1. Change the taste of food with the spice that mat h for tongue of Indonesia
2. Marketing Promotion in Social media
3. Cheap price
4. Good location for expand business
Dr.Chira Hongladarom
3L’s is ok and use to apply other
Group 2
Project : Setting up Indonesia Restaurant in Thailand
Uncertainty of culinary business in Thailand
Strategy
This reality and share about the problem in 5 M (Man, Method, Material, Machine, Money)
1. The first looking for qualified chef from Indonesia (Indonesia food and Thailand food is same)
2. Not all people love the taste
3. Need good service
4. Not all seasoning provided in Thailand
5. material distribution
6. Concept traditional and modern
7. Place
8. Need huge capital
9. Pricing
Promote on Social Media , Facebook, Instagram , use association concept in Selling as the mirror as Siam
2R’s
Reality and Relevance all of people have to go to Indonesia for example as we eat all of food in Thailand
Dr.Chira Hongladarom
Business is uncertainty - The number is increasing very first , there are Indonesia people coming to Thailand and Project can generate group in the future and the number of Thailand go to Indonesia is very small .You should think in imagination first to connect and Engage wherever and whatever
If you think about the project in Thailand , please let Dr.Chira know
, he’s glad that this group use 2R’s because Indonesia food is unique and please gear toward to tourism not only Indonesian .
Group 5
Project : Open business in Karawang
Positive
Resource , Much Human Resource , and long range / a lot of islands , people Indonesia is smart people , Indonesia is many big place and they must go with Transportation.
Negative
- Bad attitude (Slow respond) & bad habit
- Country of the island and long Range
- Problem in Corruption
- Regulation on Government
Solution
- Strategy Marketing
- Good Relationship with customer
- Benchmarking
Dr.Chira
Choose customer focus and then company can service in long run
Use 3L’s and 2R’s to help this
Group 3
Project : Newspaper Business
Indonesia will trust with newspaper and then have money but too difficulty for buying a lot of uncertainty in business
Positive
- Trust
- More specific
Negative
- Cost Production
- Limited access
Opportunities
- Broadcast issue
- Advertising
Threat
- Lose customer
- Now most newspapers are online and in social media
- Loss Material - paper from Tree , Information , Machine , lower cost
Group 1
Project : Multi level Marketing in Indonesia (Define the marketing)
Positive
- Provide business opportunities to others
- Can share the provide
- Quickly gain profit
Negative
- Seasonal business
- Fast bankrupt
- Experiences more dam in business
Strategy
1. Critical Thinking – To improve productivity such as Look the marketing sell, marketing place, target group
2. Dare to take risks - Not afraid to fail to spur hard work
3. Open mind – Open thinking will give the growth of new ideas
Dr.Chira Hongladarom
Everyone try to explain business , each group try to solve the uncertainty and use Dr.Chira’s concept and using customer focus and use technology online such as newspaper
Keyword is turn uncertainty into benefit . HR and other tools can solve problem same as leadership can solve problem too . We have to solve the business that not survive because some is risk but you should manage and overcome difficulty in the long run.
July 3,2018
Strategic Management and Business Policy
According to Chira Way, in order to have strategic positioning in your business, we must begin with 4 steps;
1. Where are we?
2. Where do we want to go?
3. How do we get there? (Strategy)
4. How to execute or overcome difficulties?
Example : If first time you come to Thailand you understand Thai culture, when you come again you will not strange for Thai Culture
(2) In Dr.Chira’s opinion, we like to propose 3 ways to arrive at strategies. First to conduct strength and weakness;
- what are the external environment?
- what are the internal environment?
- what are the opportunities?
- what are the threat?
- and finally come up with strategy which I like to be inclusion call “Balance Scorecard” ;
People (Learning)
Customers
Finance
Management System
(3) Michael Porter Way – 5 Factor to affect your company;
1. New Competitors
2. Available Competitors
3. Suppliers
4. Customers
5. Substitution
Thus, for positioning your business strategy, there are 2 things you need to focus;
New and difference products /services which call “Innovations”.
Effective cost, not too high. Source: http://www.maxi-pedia.co
(4) Use “Game Theory” for your strategies. The best way is “Win – Win Strategy”
√ Win – Win
X Zero sum
X Lost – Lost
(5) And the last one is “Strategy” in “Chira Way” which is “Human Capital Strategy” for success and sustainable development for the business which consist of 3 ;
1. Cultivating = Development
2. Harvesting = Management
3. Execution = Action for success/values
The important problem is most of business only have strategies but no “execution of success” because most of people..
- Dislike “Change” / Anti – Change
- Keep staying in “Comfort Zone”
- Has “Fixed Mindset”
(6) And the last of this point is “Peter Drucker” said “Culture is important than Strategy”
Strategy alone is not enough , you are not learning from Dr.Chira only, you learning from culture too.
1. Look at external environment , change in technology, change in global system.
2. Look at internal environment and then generate the benefit to your company
The different between policy and strategy.
1. Strategy is the way you want to develop your company to success in situation
Not strategy alone , you have to transfer strategy into policy.
Policy in company is to follow Vision , mission
Talent Strategy turn talent into people / investing in people
Is abstract
But the policy is the way to improve your strategy
Without Strategy , policy is hopeless
Without policy , Strategy is name only
Some Rules in Business Policy
- Any organization must know what it exists in order to survive.- Purpose of Company – Why you set up company?
- Key persons must set up policy to manage the business .
- Business can do well if they can complete and survive long term.
- Vision, Mission and Strategies need to be done for the company, all of these
you develop policies to achieve the objectives.
5. Policies can be five years policy and translate into your plan.
6. Let the Board Approval and CEO and his staff can follow.
7. The main aspects of policy is;
- Finance
- Marketing
- Human Resources
- Technology
Return on investment of people is long-term :
1. Learn yourself
2. Catch up what it’s happen in your society.
The people has emotion don’t like machine , but managing people isn’t easy.
Finance and Marketing and Technology usually come first but I suggest that for long term survival, human resources is the most important but it is a long term goal so the leaders of the company must have long term Vision.
Human Resource is not about Human Resource Manager, but it’s about how to working together.
Most CEO in Thailand may not invest in people policy in human resource can be in the hand of HR Development, must come from CEO and Non HR so that they can work together
Learning organization is : Learn – Share - Care
1. Learn from one another
2. Share for one another
3. Caring the idea that think differently than you – Value Diversity
How to execute Strategy or How to overcome difficulties
1.Communication – make sure it’s clear what you want to do. /everybody must study communication
2.Long term effect
3. Incentives – Both tangible and Intangible
- The tangible is incentive that boss recognize you such as salary, bonus
- The intangible aspect belong to Asia such as happiness, networking, dignity, respect , and sustainability.
4. Trust
5. Leadership
- The future leader is the one who serve you as leadership
6. HRDS – Happiness, Respect, Dignity, Sustainability
7. Step by Step
8. Management Conflict – avoid conflict because there are many strategy and policy that are so conflict especially in silo system , so it’s better manage as in horizontal not in vertical.
9. Teams of Diversity
10. Team of Rivals – turn enemy into friend
11.Tracking and reports – record what you try to do , and then get feed back what you do.
Workshop (2) (for every group) (20 minutes)
1) If you want to develop business – Cooperation with Thailand – What is your company strategy such as Marketing, Human Resources, Finance, Technology
2) What is the difference between Strategy and Policy and How to execute Strategy with success.
Group 5 : Fruits of Thailand to fertilizer how to make Materials and grow up the agriculture in Indonesia
Reasons
- Good Taste
- Good price
- Fertilizer in Thailand , Asia, and Africa
Strategy
1. Look at fruit at Thailand is so good and so delicious
2. Export fruit from Thailand to Indonesia
Group 4 : Tourism Business in Thailand
Indonesian come to Thailand are so many people , 600,000 persons
Strategy
1. Chira’s Way 2 R’s Reality and Relevance are good challenge
2. Balance Score Card
1. People
– hiring people in Thailand
- Communication Skill
- Knowing & Understanding about Tourism in Thailand
2. Training and Education
- Regarding the culture
- Bahaza Indonesia (Thai people have a good Bahaza )
- Culture Indonesia people (Training culture as Bahaza in Indonesia)
3. Finance- Bonus
- If we get achievement in one year, we will give bonus to all employee.
4. Management System
1. Make Relation Indonesia and Thailand
2. Make Strategy and Policy for long-term business
Dr.Chira Hongladarom
Number of people from Thailand to Indonesia is 100,000 persons less than people come from Indonesia.
Group 2 : Padang Restaurant
Vision : The best pioneer of Indonesian Restaurant in Thailand in 2023
Mission : 1. Being the most recommended and favorite restaurant in Thailand (such as Create Best menu)
2. Acceptable in Thailand
Rational : Padang has delicious in the world
1. Marketing Strategies
1. Cultural Understanding
2. Segmentation
3. Promotion
Policies
1. Cooperation & understanding local rule & regulation
2. Promotion to local & Tourist
2. HR Strategies
1. Right man in the right place – Choose the export
2. Talent management
Policies
1. Choose Chef from Indonesia may be chef from Thailand
2. Training / Send Thai people to Indonesian to cook Padang Food
3. Technology Strategies
1. Concept
2. Equipment
Policies
1. Tradition
2. Modern Equipment
3. Exotic Decoration
4. Financial Strategies
1. Pricing – make important things to think
2. Profit
3. Stock
Policies
1. Economic Condition
2. Report & Tracking
3. Thailand 52% : Indonesia 48%
Group 1 Strategy running business with Thailand in the field of HRM
1. MOU between two department of two countries
2. Internship Program
3. Cultural Introduction of each country
HR
- Program in school link
- the standard in Thailand
- Agriculture
Group 3 Travel Agent in Thailand
1. MOU Thailand-Indonesia
2. Advertising – Tourism such as social media
3. Managing – Create Packaging such as culture in Indonesia and Thailand
Dr.Chira Hongladarom – Each group talk with the cooperation are about tourism, food, HR Training . There are a lot of cooperation in the future. For Tourism of Thailand to go to Indonesia and Indonesia to Thailand , we got to develop logistics such as Medan to Hatyai is very closed . We developed project for tourism of Indonesia to travel in 5 provinces in the South of Thailand.
We should also link between young people between two country
We are one community in Thailand , Experience to share , We have more time to work together 4 topics
1. Learning how to learn
2. Business policy and Strategy
3. Toward Global Sustainability
Toward Global Sustainability
(1) Quotations
“Sustainability creates new knowledge and wisdom with multidisciplinary approach.”
Unknown
What would you will be in 20 years from now ?
1. Imagine to the future of the world
2. Work together to keep environment green.
UN Sustainable Development Goals
1. No Poverty
2. Zero Hunger
3. Good Health and Well
4. Quality Education
5. Gender Equality
6. Clean Water and Sanitation
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry , Innovation and Infrastructure
10. Reduced Inequalities
11. Sustainable Cities and Communities
12. Responsible Consumption and Production
13. Climate Action
14. Life Below Water
15. Life on Land
16. Peace, Justice and Strong Institutions
17. Partnerships for the Goals
Philosophy of “Sufficiency Economy”
1. Moderation
2. Due Consideration
3. Sufficient Protection from Internal & External Shocks
With have two conditions is Knowledge and Moral Fiber
Uncertainty in the negative sense , so make sure that if you’re not ready ,you don’t go for it or invest for it (high risk , high return , also high lost) .Prepare yourself to have knowledge and Moral Fiber to be survive
It’s keep you to capable to dealing business in global how you can survive when the world are all strange
8 billons people in the world , How to keep Indonesia is sustainable
In Chira’s way also develop Sustainable Capital in 8K’s Theory with The Key is 1. Never stop learning and 2. Never stop Exercise
8K’s Theory : basic in Human Resource Development
1. Human Capital
2. Ethical Capital
3. Intellectual Capital
4. Happiness Capital
5. Social Capital
6. Sustainability Capital
7. Digital Capital
8. Talented Capital
5K’s (New) Theory
1. Creativity Capital
2. Knowledge Capital
3. Innovation Capital
4. Cultural Capital
5. Emotional Capital
Ethical Capital :
Professional is do the best in your job , How can be good human capital in the future, The future should be transparency . Work as much as they could is ethical
Happiness Capital :
1. Like what you learn/Love what to do – not work for money
Such as if Dr.Chira didn’t make the student happy, he will feel bad.
Think more before you learn anything.
Sustainability Capital :
In life when you have money to investment , think about worst case scenario
(5) On sustainability, Dr.chira like you to look at concept “Chira’s 6 Factors” of Sustainability”
Sustainable Development must;
- Balance the short-term and the long-term benefits
- Be environmentally friendly - Keep environment friendly in the long run.
- Balance the morality, ethics and development – and in environment too.
- Be based on scientific thinking, analytical thinking, life-long learning and learning society
- Benefit the majority instead of small groups of people
- Be self – reliant
6) As Dr.Chira’s speech for International Conference on Green Entrepreneurship & Innovation for Sustainable Development (ICGEISD 2017) (29 August, 2017). At University of Muhammadiyah Gresik, East Java Indonesia. Dr.Chira think green business is a best way of sustainable development. Business must start with understanding and develop people awareness of how is important and impact of sustainable development. We need to develop human capital into the future which understand the sustainable development which include the concept of ethical capital that business must think about the long – term sustainable development
Sustainability isn’t survive if not action. Ask yourself what is possible in the long-run.
1. Anticipate in the future to be survive and become relevant (Both yourself and your company) such as Progress in life is protecting nature too.
2. King Rama IX say that don’t be extreme, make in the middle path
3. Know what you must involve in life . the Capable to deal with the risk in the future
In conclusion , read the workshop and if you have time , you do by yourself.
Workshop (3) (for every group)
- What are the different between global sustainability and national sustainability? Give the reasons.
- How to apply the “His Majesty the King Rama IX on Sufficiency Economy Philosophy” to sustainable development in the business in your country.
Download Dr.Chira's document at : https://drive.google.com/file/...
Thank you very much ?
บทความภาษาไทย
https://www.facebook.com/media/set/?set=a.217691755732371.1073741853.166005617567652&type=3
https://cdn.gotoknow.org/assets/media/files/001/300/827/original_naewna_07072018.pdf?1531195310
http://www.naewna.com/politic/columnist/36093
ที่มา: คอลัมน์บทเรียนจากความจริง. แนวหน้า. วันเสาร์ที่ 7 กรกฎาคม 2561 หน้า 5
English Article
http://www.gotoknow.org/posts/648857
Source: Learning from Reality with Dr. Chira Column. Naewna.
Saturday 7 July 2018, p.5
TV Program
Source: Kid Pen Kao Pen with Dr. Chira TV Program.
Networking Capital Creation for Promoting Cultural Capital through International Education Episode
Broadcast on Saturday 25 August 2018 at 21.00-21.30 hrs.on TGN Global Networks
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