Article snapshot: The Cooperation Complexity Rainbow: Challenges of Stakeholder Involvement in Managing Multinational Firms

Another article snapshot... this time I came into the research process at a later stage and as the fourth author cannot take credit for much :) The credit goes to:

• Salman Kimiagari, PhD candidate in Enterprise Engineering 
• Samira Keivanpour, PhD Candidate in Industrial Engineering 
• Muhammad Mohiuddin, PhD (ABD) in International Management

All students at Université Laval in Quebec City and all members of CIRRELT (Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation) - I am a VERY proud alumni of both! (Please note the inter-disciplinary nature of the authors, which shows the absolute strength of the training we receive within CIRRELT - working across disciplines is the norm, not the exception!)

If you would like to read the full article (it is open source yeah!) you can download a copy here: Article

And if you would like to cite the article here is the citation:

Kimiagari. S., Keivanpour, S., Mohiuddin, M. & Van Horne, C. (2013) “The Cooperation Complexity Rainbow: Challenges of Stakeholder Involvement in Managing Multinational Firms”, International Journal of Business and Management. 8(22), 50-64.

The objective of the paper is to highlight and present a theoretical framework on challenges that multinational corporations (MNC) face when integrating their stakeholders in management processes - because in a multinational corporation, value-based management and long term value creation require the consideration of all stakeholders in the strategic decision-making process. In this way, sivolving stakeholders is not only an activity aligned with social responsibility but also necessary for ensuring effective corporate governance. Establishing an appropriate strategy for stakeholder engagement raises several challenges for multinational firms.

Why involve stakeholders? Well, contrary to the belief of many management scholars (I won't cite here, read the article!), the theory that firms only exist to to maximize shareholder wealth is not the only game in town. There is a contrast view that a firm needs to work towards maximizing stakeholder wealth... but that is a much more difficult endeavor, especially when running a multinational firm with stakeholders from different, countries, rules and regulations, cultures and religious beliefs!

Figure 1 illustrates the onion layer of "players"

Figure 1: Onion layers of actors in MNCs

Of course this brings up many challenges - and begs for a conceptual framework to bring order and a "method" for the madness of decision making in such a complex environment. The "Rainbow" is illustrated in Figure 2 (there are many other figures and an excellent literature review in the article).

Figure 2: Framework integrating stakeholders into the MNC management process

The conclusion of the paper:

Dealing with different stakeholders in different socio-economic, cultural and political backgrounds raises many challenges for multinational firms. These challenges can be addressed while respecting local and global ethical concerns with adequate communication channels. Without doubt, involvement of stakeholders requires appropriate dialogue and negotiation with interest groups. Different cultural and political frameworks complicate these negotiation, bargaining, and dialogues.

Based on the plan-do-check-action (PDCA) cycle, some challenges may occur in the phase including planning, execution and mentoring. Other challenges, such as the clear definition of goal and objectives and value definition from a stakeholder`s perspectives, exist in the planning phase. In the execution phase, the identification of key stakeholders and their priorities, and in the monitoring phase, identifying performance metrics are a source of conflict. Future research could include empirically testing the proposed conceptual framework.

So there it is - cross-national, multi-university, inter-disciplinary work in action. Again, I am proud to say my research "training" at the Université Laval and with CIRRELT (and FORAC) made me think this was "the normal" way of doing "academic business".... it isn't, but frankly I think it is the best way of doing research! (That and doing research with your friends!)

Strategy class trip to Emirati family photograph art exhibit

Yesterday I took both my men's Strategy classes to an photography exhibit developed and organised by the College of Art and Creative Enterprises at Zayed University in Abu Dhabi. You can read The National's story on it here.

The exhibit displayed what was first a very creative assignment given by Dr.Michele Bambling who invited students to bring in family photographs and over the past three years it grew until there was almost no choice but to do an exhibit. The book (which is truly stunning) was designed by David Howarth, an Assistant Professor of Graphic Design. In the words of Marco Sosa, who designed the show:

"This is the first exhibition and accompanying book that examines family photographs produced by Emiratis during the second half of the 20th century.

The photographs and video footage in this exhibition differ dramatically from better known and widely distributed professional photos taken by early explorers, missionaries, oil companies, government agencies, the media, and royal family photographers. These are snapshots focused not on official events or protocol, by virtue of being taken by amateurs; they are candid, clicked for private viewing and lasting memories.

The exhibition begins by showing the process through which students collected, researched, curated and authored a book of photographs. The oldest photograph found in a home was dated 1958; the most recent one was made in 1999, after which the students could ‘see’ the world into which world they were born.

The second part of the exhibition explores student responses to these photographs through a series of experimental installations that draw on them with an aesthetic sensibility of their own generation.

These inter-generational works consider a critical issue: the capacity of photography to evoke memories and stir the imagination."

But why take my "strategy boys" there? What interest do they have in art? Or taking the long outside trek to the exhibit space on the exact other side of the campus from our class? Because, as I have written about before, their first assignment is an essay on the subject "Strategy is..." based on an interview with an Emirati older than 60 years young. You can read a post about the assignment here and some results here.

I wanted them to be inspired by the photographs themselves to remember family stories, legends and other oral history that teaches about how people reached their personal and professional goals - about the strategies they used and the tactics they employed.

The students found it interesting, some were very keen to learn more about ways to celebrate and preserve heritage and culture and that was exciting to all the professors there (thank you Marco, David and Michele for volunteering your time for the tour!). We also used the Polaroid camera to fill the map of visitors to the exhibit... 

Teaching "business" subjects is not about just using techniques invented by old (white, sorry but true) men in the 50s and 60s. Teaching strategy, management and human resource management can be done in any number of ways - and to be relevant to today's generations, and especially to be relevant to Emirati students we need to find ways to teach that are relevant to them - not people who lived in another era and century! 

Mr. Marco explaining the exhibit and the heavily student involved process

Dr. Michelle, Mr. David and Mr. Marco

Trying out the old typewriters and looking at the book

A student from Ajman being photographed for the map

And I live about here! Using google maps to pinpoint exact location!

Strategy trip to the mountains of RAK

A year ago the young man, Hassan Al Shamala who hosted us so generously in his home, was drowned when a strong wadi swept his car away. Hassan was the first in his family to attend university and his family was very proud that he was a university graduate and an officer in the military. He was greatly loved by all his fellow students, from every Emirate. 

He was also very special to all faculty and staff who learned so much about Emirati culture, from sword dancing to mountain living to an absolute generosity of spirit that still holds the most special memories for me.

Thank you Hassan for the beautiful memories described in this post and the many joyous moments you created for so many of us.

Hassan in his mountains - RAK (Photo by Marco Sosa)

This blogpost was written using first hand research done by the young Emirati men in my BUS 402 Strategy class in Fall 2012. We also took a field trip to the mountains of Ras al-Khaimah (organised by the men) and were hosted by Hasan and his father in their mountain home. On behalf of the class and David Ribott, a Student Life specialist who also came with us, I want to say a very public thank you to Hassan Rashed Bani-Shmeili and his father Mr. Rashed for their hospitality and generosity in sharing their traditions and their family artifacts.

The group projects were all organised around the strategy of heritage - the groups divided into tangible heritage, intangible heritage and cooking. We also had a group visit the Sheikh Zayed Centre in Abu Dhabi (which hopefully I will write about in another blogpost).

However, true heritage cannot be just written about, it needs to be experienced. So the class organised a RAK Day for us to experience what the heritage of the mountains in the UAE really is (in particular the al Shehhi tribe who are originally from the mountains of RAK, Fujairah and into Oman).

We went to the other side of these mountains

Good photo of the road we took

Now, in the UAE the tangible and the intangible get mixed up. For example sword dancing is an intangible tradition that is a specialty of the tribes from mountains and is done in weddings, celebrations, National Day and special occasions. However, the tradition of sword making is also very much a part of the old ways before the discovery of oil and the unification of the seven Emirates in 1971.

Mohammed leaping and Hasan showing why their tribe is known for strength (at National Day celebrations 2010)

Old sword - up close you can see the swirls in the blade

Other tangible heritage or artifacts we don't know a lot about - except what they were used for. For example this pot, we didn't know how old it was, but we know it was used for food.

Old pot

Speaking of food - we ate very traditionally that day and began with a sustaining and delicious harees. It takes hours to prepare and is made with bulgur wheat and lamb (or chicken, I have had both). For lunch we had the lamb and rice meal which you saw in the "Visit to Khaled Hurriyah Restaurant: An Emirati Gourmet Experience" post.

The meals were an example of another important part of the heritage of the UAE - working together for the common good. Take the next photo, in it are young men from four of the seven Emirates (spending the day in  a fifth), preparing breakfast for us all.

Working together from four Emirates

Of course it is intangible heritage that is so hard to capture - I have experienced henna, poetry recitals, cooking, and seen the hair dancing at women's weddings and the sword dancing a few times - but I had never seen (except on video) the yodeling (called nadba) done in the old days to communicate between the mountains and which is now done at weddings and special occasions to welcome guests. I grew up with Dad yodeling so it was quite a treat. I understand now that they welcomed us all... of course at the time it took us back to a time of no phones and where voices needed to carry for safety and even for protecting against invading tribes.

Nadba - Shehhi tribe known for this

We also went for a drive and saw old (really old) abandoned houses made from the stone of the mountain and they explained how people lived and showed me dried fields which used to be filled with grasses in the winter, but for many years there has been little rain. We saw a modern irrigation system being built by Mr. Rashed and older systems for the old houses.

The history of this area of course dates back to before stories were written down - I think the next photo is a fossil, but I don't know for sure.

Fossil

We also spoke about how things have changed and how strategies for tribes, families and individuals have changed. We spoke about entrepreneurial activities that could be developed to create jobs for enterprising young people or retired military personnel - of course we also just soaked it all in and were silent in our own contemplation. The last photo is a photo of me, or a photo of a student looking over the bay far below us. Maybe the best lesson learned on the trip was that developing strategy requires us to know what was, what is and what could be... and it requires contemplation.

Learning about strategy from Elders: Past lessons can provide tomorrow's solutions

I finally got all the essays back from the Strategy Students - Strategy is... You can read about the assignment here in detail, but basically students had to interview an Emirati older than 60. I chose that age because I wanted students to talk to someone who would remember the differences from pre-UAE (before 1971) and after the UAE came together as a country and the discovery of oil.

The students, from Fujairah, RAK, Al Ain, Hatta, Ajman and Abu Dhabi - chose both women and men, family members and tribal elders, from all strata of society. They all said they were happy to have had a reason to ask questions and to learn about the past... they all learned things they did not know and were reminded of how blessed and easy our lives are today.

A few of the scholars

Of course, as a strategy professor, I look for patterns, for commonalities that could provide me with insight into what "strategy" was in the past - so I can better teach it and do research on it in the future. the reason I used quotation marks is because strategy is not a term that would have been used by their grandparents (or my own) - the strategy was survival through working hard, working together, working with the materials on hand and working for the future.

What were the themes that ran through all the essays? Well the first of course is the deep respect and reverence for the late Sheikh Zayed - who united the country in 1971 and all the ruling families. Another, is the strong role of the mosque and Islam. The mosque in the past was where young boys (and girls) were educated in Arabic, mathematics, geography, and of course religious studies. Education was always seen as an important part of life. Apart from these core fundamentals there were a few themes that stood out for me: equality, transportation, collaboration, economy, and sustainability.

First, I was incredibly proud that many of the essays included significant discussions on the equality of men and women - and that when schools began opening in the UAE after 1971, there were schools for both men and women. This pride came from their elders and was nurtured in these young men.

Second, was how difficult and long transportation was in the past. There were camels, donkeys and horses, but horses could not be used for long distances over the desert. Of course there were boats along the coast, but there were no motors. These modes of transportation were slow, arduous and fraught with danger. Bandits would lay in wait for the caravans traveling between villages and towns and towns and cities. Camels could and did die along the way and the only option would be on foot. Since travel took such a long time, when family came to visit, they stayed for long periods of time. As well, people did not travel alone. There was safety in numbers and also a number of hands were needed for basic survival along the desert journey.

Collaboration was not just used for traveling. Collaboration was the only way to survive the daily effort of providing the food, water, shelter and medical care that were needed. To paraphrase one Elder "the problems of one member of the family, was a problem for the whole family". People worked together, in small and larger groups organized in tribes. People would help one another. This of course would lead to the lessons of life that another Elder mentioned, "Life was difficult before the union, but it taught patience, tolerance and hard work".

This collaboration and tolerance are necessary ingredients of the barter economy which was the economy in much of the UAE. The surpluses of one family were traded for the surpluses or skills from another. One elder women interviewed was widowed early in her married life. She developed herself as an artisan - using palm fronds to weave mats and items. In modern terms I would say that each family or person needed to develop distinct competencies to be an active participant in the economy. Of course the same is true today, although the required skills have changed. Many of the Elders said that the only hard currency came from trade of surplus fish, dates, pearls, produce which were brought by caravan to the cities.

Finally, sustainability. I loved that all essays mentioned that everything was used and shared - palm trees gave a vital source of food, but also material to build houses and also fuel for cooking fires. Rocks from the mountains were used for construction (as it is today) and tools would last generations. Older generations taught younger generations through working alongside and working and learning together.

I know, this is a romanticized vision of the past, but my goal is not historical scholarship - it is finding the patterns that worked in the past, which are still an inherent part of the culture, society and economy. With these patterns we can better understand the present and I can better teach my students - who are the future generation of leaders.

I extend my debt of gratitude to the Elders who shared their stories with my students, knowing they would be shared with me. Also, to my readers, I hope you think a little differently about the past and present here and see a little of the richness of the culture and heritage I experience on a daily basis through my marvelous students.

Strategy is... a look at strategy in the UAE before 1971

My Strategy class starts up next week - this will be a ten week intensive course after the students' internships to cap off their undergraduate degree in business.

As regular readers of this blog know I love strategy - and my goal is for my students to love it as much as me - and be able to use it in their lives, their organisations and their future work with their communities.

This blogpost is about their first assignment - yes, it's an essay (bonus points for those who guessed). The purpose of this essay is to find out what strategy was before the UAE became the UAE in 1971... with this I hope students can think of how to adapt from the past, combine with some Western theory and come up with a personal strategy suited for here - the culture, the environment and the societal goals of Emirati (which, from reading about 60 of these essays so far, has not changed much).

The students' task is to interview someone over 60 years old and ask them how things were and how they planned and organised and survived - over 60 because I want them to have been old enough to remember what it was like when the seven Emirates were brought together... this wisdom needs to be captured and written down, or these stories could be forgotten...

A normal complaint it that people don't use the word strategy and won't understand what it means - I say to that - "I know" - explain what strategy is in their words, listen to their stories and make the links between the theory presented in class and what your interviewee is saying...

I haven't sat down to analyse the results of the previous essays - but I will when this batch is handed in. I can tell you that he basic strategy was survival - but not personal survival - survival of family, tribe and community. I heard that one time an interviewee was out fishing for days, but returned with little to sell - so he jumped in his car and became an "on the spot" cab driver.

One student discovered his Dad had been a pearl diver when he was very young, another that his grandfather had travelled to many countries in the region trading ... now we could say there was a diversified strategy in place, that changed with the seasons... and camels really were the ships of the desert...

I am looking forward to this semester's essays... and hearing the stories first hand of what it was like... and seeing the students learn from the past and adapt those lessons for the future.

The Strategy of Poetry in the UAE: Another Awesome Project by my Strategy Boys

I have already blogged about poetry – Arabic poetry – and how it is a useful tool to teach management to students here in the UAE. Really though, it is ideal to teach strategy (I just wish I knew Arabic to understand the words, not just the meaning. I am kind of lazy and only learn languages when I have no choice, and here English is really used everywhere).

So this blogpost (and I was warned by a student that I seem to be addicted to blogging now, and I think he might be right!) is about poetry and strategy and the event my full-semester strategy class organised (BUS-402-901 Spring 2012).

From their project report I know that Arabic poetry has a huge impact in the Arab world. I kind of relate it to the troubadours of old – poetry was about love and history and battles and was used to inspire, teach, woo, and thank.

Now Arabic poetry is complicated, and there are two main kinds – rhyming and prose – but rhyming is used more. Rhyming poems have measures or “seas” and there can be 15 (The Science of Arood) or 16, of course this reminds me of sonnets in English. But yeah, we remember learning about sonnets and meters and things like that in English Literature classes – but Strategy class? Huh?

Well – in the Gulf especially poetry is all about strategy. I am blessed to have had many poets in my classes (both male and female) – and they write poems about their families, love, friendship, loyalty and they also write poems for special events and to thank an important person.

Many events here begin with a poem – and there are many famous poems throughout the history of the UAE and many of the leaders here are also very accomplished poets. Poetry is more than the highest art form – it transcends art and literature and history – this is what I feel and what the students try to explain to me.

They have also explained that in the distant past, when tribes would have “issues” with one another, these issues could be mended through a poem – a delegate from one tribe would visit another with a poem of praise or “I am sorry, but I am a guy and can’t say sorry”. I am not making light of it, I think it is a way of expressing deep respect – and a way of resolving conflicts (or potential conflicts) without more conflicts. It was also used to send political messages and avenues for solution indirectly, with sophistication and – uhm, poetry.

In the past as well it was used to rally the troupes in periods of wars and battles. I am also told that poetry has been used to court women so that they will marry the poet (or person who paid a poet to write the poem) and I am assured it works most of the time!

So, now the event. I have some very talented poets in class as I mentioned and they organised an event (and wrote poems themselves for the event) to recite the different types of poems and explain a little how they can be used. Poems can be about love, make people happy or laugh and also about the military – to raise morale and increase patriotism. Poetry will always bring out a crowd and it did again this time. Again, I guess I have too much of my mother in me, but I enjoy just listening to them recite the poems and hear the audience reaction – that may sound weird to you, but really it is beautiful.

I wrote too much again! But below are photos of the poets and one of me greeting the Vice-President of the University – who came to ever single event the boys organised J Milles mercis!

Three poets left to right: Ahmed Al Mansoory, Ahmed Al Kendi and Mohamed Al Dhanhani

The fresh dates in front of Ahmed tasted so, so, so, so good!

UAE Strategy Through Photographs: The Event

Part of the team and their honoured guest.

I have been a bit behind in blogging - but I got the final grades for this class in at least and will now blog their group-project/event. How I teach Strategy (well, how I teach everything) is to "force" students to look at the world around them in a different way. Analyse what they are seeing and how it reflects the strategy of a company (or country), the leadership goals of a manager or the "gap" between what is said and what is done.

I also want my students to learn the "theory" of management or strategy as it was been done here in the past (before oil and ex-pat managers if you will) to find if there was a different way/philosophy of doing things than the Western model we teach them from the textbooks. I want them to understand both the Western and the Traditional way of managing, leading, strategising and then find their own path.

I am thinking of writing a strategy handbook this summer about the stories we have learned about the past - that is if my summer ever starts :)

OK, back to this event that I missed being a super nerd in Jordan (which I blogged about and enjoyed so much it made me re-want to be a professor and researcher all over again). The students organised a photography event (first blogged about here First blogpost) to:

1. Raise money for charity
2. Show that the implementation of Abu Dhabi Plan 2030, UAE 2021 and the other Emirate's plans is happening all around us
3. Learn about the challenges of organising a biggish event (especially when we have JBI running the show)

Each small group of students had specific tasks, and yes, there were challenges - they worked through them as a group. They made plans to show the photos on the girls' side too (thanks for the help as always Mariam) but the two day sale was such a success on the boy's side that they decided not to go ahead with it.

They sold a lot - and raised enough money to fund drilling three water wells in Sri Lanka (which is very fitting with all the talk of water in class). They used their own funds to print the photos up and donated the unsold photos to the university.

Here are some photos of the event. I hope you enjoy them and I hope you are beginning to realise that Emirati men (even the young ones) are not like their stereotype that is being propagated even into the New York Times. I will miss them of course, and hope to see them again in the future - and I hope to be invited to sit as the "academic nerd" on their Boards of Directors in a few years' time!

Day 1: already 7 sold in pre-sale

Special visitor Dr. Sulaimann the VP of Zayed University

The one with the blue line (Sheik Zayed Bridge) is in my bedroom!

Banner they had made

Strategy of the UAE Through Photographs

So, the same class that hosted the Man City party is holding a charity event for the Red Cresent. They have invited all Zuers (students, staff, faculty) to submit photos that document or portray the strategy of the UAE (yeah, I had a hand in the theme...). 

How do you find out about strategy in the UAE? Well, you could read some of the blog posts below this one, or you could read Abu Dhabi 2030 - or any of the other strategic plans (outlined in the post on youth entrepreneurship). But really it is about what is the path that will lead to the vision of the UAE as articulated in the founding of the country a little over 40 years ago - when you see it you will know.

Those of us who aren't photographers can buy the prints - which will be exhibited in the firt week of June. I get first dibs of course, but no discounts :) Good luck all and if you have questions put them in comments and I will answer.

Here is a painting by one of the student organisers, Rashid Al Bloushi - this is an example of the type of image they are looking for (if you are able to explain in a few sentances what strategy it represents).

Here are the rules (written by the students):

1. ZU Male/Female Students, staff and faculty are welcome to participate and submit their images.

2. The images should be taken by the photographer, not from a website or other sources.

3. The maximum images per person are 15 images.

4. We do not accept images from mobile phones or any non-professional camera.

5. Images must be high quality images and in JPG format.

6.A committee will be formed of experts to select the best photos submitted.

7. All participants can put a small sign at the bottom of the left side of the image to make the intellectual property rights remain with their photo.

8. Each photo must include a short description of how the image reflects the Strategy (past, present or future) of the UAE

9. Photos must be sent in a compressed file (zip or rar) with your full name to the email of the Organizing Committee, which is (Tashtoool@yahoo.com)

10. Deadline for sending photos is 22/5/2012.

11. An invitation will be sent to the ZU community with the time and place of the exhibition in a separate message later

12. The Organizing committee will cover all printing costs of the selected images for the exhibition.

13. We will display all selected works in the exhibition in a one-day and will be sold in the same day. The revenues of this business will be given to the Red Crescent Society.

14. The photographers of the chosen images, will be recognized.

Let them eat cake: Learning strategy through celebration

Manchester City won the Barclays Premier League football (soccer for the North American readers) for the first time in 44 years last Sunday. Now, you might not know, but Man City is Abu Dhabi's team - Abu Dhabi United Group for Development and Investment owned and run by Sheikh Mansour bin Zayed Al Nahyan bought the Club in 2009 - and just three short years later we won (yes - I am a fan too).

The Chairman is HE Khaldoon al-Mubarak, who is also the CEO of Mubadala. After they bought the team, they quickly brought in a new coach, bought high profile players and somehow magic seemed to happen. Now any fan of the Toronto Maple Leafs will tell you that lots of money invested in expensive players does not buy championships... but buying the right mix does.

I had planned to show HE Khaldoon's interview today in class (http://www.mcfc.co.uk/)- to have a discussion about the changing strategy of hte Club - from short term "buying" a championship to long-term player development with the Etihad Academy. Then walking into the class, the video of the game was playing, there was cake and coke and it was a celebration - we ate cake, watched the goal, watched the chanting - watched the interview - and then talked strategy.

My boys know more about football than you can imagine - who, when, where, why - they just didn't realise that a well managed team has to follow a strategy - and that we, as students and researchers, can learn from that strategy to apply it in different situations.

So congratulations Man City for an excellent implementaion of a winning strategy Made in the UAE!

Arab and Emirati Youth – The UAE as a well-source for entrepreneurial development in the region

Since October I have been leading the 2011 UAE GEM Report with Dr. Victor Huang - since I moved here in August 2009 I have been very active with youth as supervisor of the Business Associations on both female and male campuses and with entrepreneurial organisations such as Tamakkan. Dr. Victor has been the supervisor of the ZU Entrepreneurship Club since its dynamic launch and has seen the development of the Club and its executive members as the have become among the youth leaders in entrepreneurship in Abu Dhabi. This blog is a result of our work, observations and long long hours of analysing mountains of data and our own anecdotal experiences.

The UAE is similar to the Arab world in that the majority of the local population is under the age of 24. Although there appears to be an abundance of resources, full and gainful employment of local Emiratis is and will remain to be a challenge in the coming decades. The reluctance of the private sector to hire Emirati youth, coupled with the saturation of government positions by mid-age Emiratis, foreshadows a great need for future entrepreneurial activity – self-employment – by today’s youth.

The challenge for the government and for entrepreneurial support agencies such as the Khalifa Funds, Intilaq and Mohammed bin Rashid Establishment for SMEs, Tatweer and others, is complex, both because youth entrepreneurship in the Arab world in general, and in the UAE in particular, is little understood and the blueprints developed and used in other parts of the world are not suitable for the local cultural, economic, social and environmental context.

According to the data from the Global Entrepreneurship Monitor report in 2011, the vast majority of Emirati early stage entrepreneurs choose to become entrepreneurs due to opportunity recognition and the desire for independence and autonomy, rather than through necessity or economic need. Although there is no current data or research on Emirati youth and the motivations for starting their own businesses, anecdotal evidence from our experience as professors and faculty supervisors of the Business Associations on the men’s and women’s campuses and the Entrepreneurship Club, Zayed University students, suggests that they are motivated by passion for their idea or project, a craving for independence and a craving to be well known as a successful business person – a “self-made” success.

Although this seems to be widely “known” and accepted that these are the motivators for Emirati youth, there is almost a complete lack of understanding of how to get from spark – to fully formed idea – to business model development – to financing – to opening the doors for business.

However, an understanding of the motivations and possible incentives is only part of the story. The sustainable economic, social, cultural and environmental needs of the UAE, and its diverse regions, need to be understood to develop “incentives” and guidelines for future Emirati entrepreneurs to follow and be inspired by.

This understanding can only be developed through on the ground research, talking with key young Emirati entrepreneurs, their Emirati role models who inspire them and youth advocates. Discussions with faculty at Federal universities supporting entrepreneurship needs to be carried out – to understand what is happening on the ground and what resources and support are needed to scale up successful initiatives. Enterprising high school teachers, who have proven track records of inspiring projects and support for their students, need to be consulted and their best practices gathered into a resource guide for teachers in all subjects and grades.

Oil was the key resource needed to drive the industrial age – and the UAE has been a source for this. Entrepreneurship, while not a magic wand for economic development and diversification, will be key in the developing the knowledge economy, especially in the Arab world. The UAE can be a source of innovative ideas and business concepts tailor made in the Arab world, by Emiratis and this will be the fuel for the sustainable knowledge economy of the future.

Understanding the Strategic Process through an “out of this world” video!

I teach Introduction to Management (the first Management course students take) and Strategy (the last course of the Bachelor’s degree) to Emirati young men at Zayed University in Abu Dhabi. My students come from all seven Emirates, with the largest concentration coming from the Northern part of the country. As with most young people outside of North America (I started delivering papers at 10, kind of typical in Canada), they don’t have a lot of formal work experience to draw on to help understand the sometimes abstract concepts I am trying to teach. That management is a process (broken down into sub-processes), is a new concept – but they are clever and we muddle through together and use examples from everyday life – cars, kandoras and my favorite – bottled water J

Last week though I was given a gift in the form of a 37 minute mini-documentary about Al Yah Satellite Communication Company or Yahsat and the launching of its first satellite from initial “vision” to launch. You can find more about the company here: http://www.yahsat.ae/SitePages/Index.aspx.

Before I explain how a youtube video could be termed a gift, here is a very short introduction of Yahsat. It was founded as a subsidiary of Mubadala (the capital investment vehicle of the Abu Dhabi government) in 2007 – with the express purpose of bringing Abu Dhabi and the UAE into the satellite age. It is the first company of its kind in the region and the Y1A (the first of two orbiting satellites launched in April 2011) is a hybrid unit which has both military and civilian objectives.

So, what does this have to do with management processes? Well, everything really. Let’s take the basic fundamental management process: Plan – Organise – Lead and Control (or feedback from the rest of the process to start the planning again). All of this is done to achieve a goal or mission or on a grander scale – a vision.

The video (you can watch it here: http://www.youtube.com/watch?v=RB9e2PtfX5s) starts with interviews of senior UAE military officials being interviewed saying that the world has changed, their job has changed, they needed to have a satellite to fulfill their mission.

First interesting lesson – the mission of the UAE military has not changed in the past 40 years and according to my military students – will never change. But – the strategy and tactical tools needed to fulfill that mission have adjusted as the world and the UAE have changed. For example, technology, the increase of collaborative missions, and the ever present  threats from cyber enemies made a UAE owned and controlled satellite a must – not a luxury.

Second interesting lesson – Yahsat wanted a hybrid satellite, one that could also be used for commercial purposes in the current underserved markets of Africa, the Middle East and East Asia. It had never been done before according to the video, but through close supervision of the development process, strong leadership and a strong commitment to the mission of the project, they got it.

Third interesting lesson – We have studied Abu Dhabi Plan 2030 in class and we know that one of the main goals is to create a diversified (and sustainable) economy. Here we need to use our creative thinking skills in class after the video – now think of other Mubadala companies – hmmmm…. Would any of them have use for a satellite streaming content to over a billion people – many of the Arab and or Muslim? Hmmmm – what about twofour-54 – the Abu Dhabi based Arab media company (also a subsidiary of Mubadala) which is creating content in the region, for the region – with the goal for much of it to be developed by people just like my students.  A culturally, environmentally (little impact on the environment), socially (interesting and rewarding jobs) and economically (diversification away from oil and gas) sustainable company that will be able to use the satellite to reach new customers – kind of cool no?

So – that was the class (in blog form).  I have shown the video four times and at the end of the video the boys (excuse me young men) clap – and I clap – it is something for all Emiratis and residents of the country to feel proud of.  The video is an excellent teaching tool about so many things, but it just happens to work really well for management and strategy classes.

So thank you Yahsat for this documentary – I will continue to use it for a long time to come.

But what is Strategy?

Strategy is the road map you use to achieve your personal, family, organisational, or national vision. Just as when people plan a road trip, there are many different ways and means to choose from to get from point A (where we start from), to point B, where we would like to go. For example, the degree of pre-planning for the road trip depends on many things, purpose for the trip (pleasure, job interview, visit to the new mall, etc.), how many times we have been there before (daily, weekly, once a month, once a year, never), whether we have a competent co-pilot or a GPS (if it’s me, you better take lots of maps, and if you are traveling to a new place in the UAE it will not be in the system), or you could simple just “follow the signs” and stop at a lot of gas stations on the way to ensure a full tank and to double check we are on the right road.

Here comes the tricky part though, in really life and in really organisations there is rarely a detailed road map to follow – and if there is, there are so many new roads, new detours, and old roads that just don’t exist anymore – the detailed road map followed by others before you just doesn’t quite fit the current lay of the land.

OK – so strategy is mapping out how to get from point A to point B, following a general direction (your vision or purpose) – but how to you build the map, especially if you are starting with basically a blank page!

It’s obvious now, mapping out a strategy is about asking questions, gathering information, asking some more questions, gathering the resources you need (car, gas, fancy water, snacks in the case of a fun road trip for example), and then start sketching out the map.

But what questions need to be asked? What information needs to be gathered? What resources are needed now, could be needed mid-route and will most certainly be needed by the time we reach point B?

When developing organisational (or personal for that matter) strategy a framework to ask the right questions is needed. The one I use by habit, ease of use and through a love of its simplicity is the SWOT. What are the internal strengths and weaknesses of the organisation (or the future organisation, or myself) and what are the opportunities and threats “outside” – be it in the industry, the community, the economy, the regulatory environment, etc.

So, you need to ask –

1.      What are the strengths (skills, access to resources, social capital) that are in my “hands” that will help me achieve my vision?

2.      What are the weaknesses (often the flipside of our strengths) that could prevent me from achieving my vision?

3.      What are the opportunities that can be taken to help me along the path to achieving my vision?

4.      What are the threats which could block or slowdown achieving my vision?

So the basic framework – which when you look at it – each of those four questions needs to be broken down into a lot of other questions in a lot of categories. Also, if the information is easy to come by to answer your questions, then that means your roadmap will not look that much different from everyone else’s.

So think, be creative – ask for help – READ what others have done before you – take a strategy class J But write it down, first step buy a nice new note book and open to page one – and start dreaming.

I know, I know – I keep mentioning vision and I didn’t mention how to get one…. Maybe next post…