Sink or Swim ? : How to Stay Afloat in Tough Economic Times : Business Lessons from the UAE

Richard Dean

Description

ECONOMIC PROBLEMS , CRISIS MANAGEMENT , BUSINESS ORGANIZATION , SUCCESS , BUSINESSMEN

Sujets

• BUSINESS MANAGEMENT

Informations

• Publié par: motivate
• Date de parution: 01 janvier 2010
• Nombre de lectures: 8
• EAN13: 9796500168173
• Langue: English
• Poids de l'ouvrage: 2 Mo

Extrait

Sink or Swim?

How to stay afloat in tough economic times: Business lessons from the UAE

Richard Dean

Published with the support of GULF FINANCE

MOTIVATE

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REVIEWS

Truly captivating and enlightening! Richard is able to define the thin line between sound business strategy and corporate greed, leadership in difficult times and ineptitude and above all between those with the courage and discipline to adapt and those drowning in denial and utter incompetence. This book is a must read postmortem of one of the biggest bubbles of all times. Haissam Arabi, CEO, Gulfmena Alternative Investments

A practical, common sense guide to surviving – and flourishing – in the cut throat world of business seen through the eyes of one of the most astute and wellinformed observers of commerce in the United Arab Emirates. The touch is light but the content insightful with a universal rather than domesticonly application. Well done Richard Dean! Deon Vernooy, Senior Executive Officer, Emirates NBD Asset Management

Richard tackles head on, and answers, the question we often ask ourselves, particularly since the global financial crisis – what is it that makes the difference between those businesses that disappear and those that thrive? Jim Delkousis, Managing Partner Dubai, DLA Piper Middle East LLP

Very few people can offer an objective overview of the events that followed the financial crisis and even less are able to articulate it in such a enjoyable and informative manner.Sink or Swim: How to stay afloat in tough economic timesis rare in that it was written by a Dubai veteran and drawn from real life experiences and examples across various industries and sectors. This is a must read not only for those wishing to set up shop in Dubai or the UAE, but also offers indispensable lessons to running establishments. Sultan Sooud Al Qassemi,Columnist, The National

Sink or Swim is a valuable contribution to our understanding of what has happened to the ‘Dubai dream’ since October 2008. Richard Dean explains clearly and concisely, with the flair of the media professional, why some businesses survived the financial storm, and some did not. It is also offers seriously useful practical advice for entrepreneurs aiming not to get caught out the next time. A mustread for Dubai business people. Frank Kane, Senior Business Correspondent, The National

The most valuable questions an entrepreneur can ask is ‘Who has done this before?’Sink or Swimprovides insightful stories from entrepreneurs in the

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Middle East that we can all learn from. Easy to absorb and packed with learning; a must read for business owners in the region. Hazel Jackson, CEO, bizability

An enjoyable read, particularly the case studies on companies operating in the UAE.Sink or Swim contains many valuable lessons for people running businesses in this region. Nick Savastano, Associate Director, Invesco Dubai

The secret to surviving the economic tsunami is not just what you do when it’s flooded everywhere but what you did before the waters came rushing in. Richard Dean offers compelling insights into real life experiences and lessons that would serve every business and individual well. This book should have a permanent place on every desk so you do not forget these lessons when the ‘go bigger, go faster’ bug returns. Sanjay Upal, Chief Financial Officer, Emirates NBD Bank

Richard cuts through the management jargon and spreadsheets with his downtoearth approach to business in the UAE.Sink or Swim is an enjoyable read, and contains many valuable lessons. Ali Khan, Managing Director, Arqaam Capital

What Richard identifies in this book is that businesses aren’t run by business school jargon, but by good people who learn from their experiences – good and bad – and can show leadership by being calm and controlled in a storm. These basics were applicable 20, 30, 50 years ago and this book proves they are just as relevant now. Edward Roderick, Hon LLD, CoChairman, Envestors MENA

A muchneeded reminder of the common sense rules of business, and how companies should apply them in the UAE and surrounding region. Thoroughly enjoyable reading. Fadi Al Said, Senior Fund Manager, ING Investment Management Middle East

Insightful and accurate. Richard Dean’s personal insights, and the ground zero view offered by his subjects, make for an excellent analysis of what happened in Dubai. Yousef Tuqan Tuqan, CEO, Flip Media

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Published by Motivate Publishing

Dubai: PO Box 2331, Dubai, UAE Tel: [phone]; fax: [phone] email: [e-mail] www.booksarabia.com

Office 508, Building No 8, Dubai Media City, Dubai, UAE Tel: [phone]; fax: [phone]

Abu Dhabi: PO Box 43072, Abu Dhabi, UAE Tel: [phone]; fax: [phone]

London: Acre House, 11/15 William Road, London NW1 3ER email: [e-mail]

Directors: General Manager Books:

Editors: Senior Designer: Designer: Publishing Coordinator:

Contributing Editor:

Obaid Humaid Al Tayer Ian Fairservice Jonathan Griffiths

Moushumi Nandy Simona Cassano Cithadel Francisco Charlie Banalo Zelda Pinto

Steve Williams

© Motivate Publishing 2010 © Cover by Alessandro Zanchetta © Text & Illustrations Richard Dean 2010

All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means) without the written permission of the copyright holders. Application for the copyright holders’ written permission to reproduce any part of this publication should be addressed to the publishers. In accordance with the International Copyright Act 1956 and the UAE Federal Law No. (7) of 2002, Concerning Copyrights and Neighbouring Rights, any person acting in contravention of this will be liable to criminal prosecution and civil claims for damages.

ISBN: 978 1 86063 291 4

British Library CataloguinginPublication Data. A catalogue record for this book is available from the British Library.

Printed and bound in the UAE by Emirates Printing Press, Dubai

Foreword

CONTENTS

Introduction Section One – True Stories 1. Better Homes 2. Mahendra Patel, GEAP 3. Mishal Kanoo, Kanoo Group 4. Momentum Creative Communications 5. HSBC 6. Mike Revson

Section Two – Number Crunching

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 9 13 14 31 46 56 62 69

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Section Three – Give your business a halfhour health check 91 Acknowledgements100

Appendices Appendix 1 – UAE Growth and Oil Price Appendix 2 – The strong, sustainable business M.O.D.E.L.

103 104 108

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FOREWORD

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Is there really any logic to survival in an economic downturn? Perhaps there’s an economic equivalent to Darwin’s theory of Natural Selection, where the strongest companies share similar genes and a common approach to business. This magic formula, you might say, is what gives them the advantage and the potential to ride the ebbs and flows of the market, while weaker rivals are dragged under, having fought bravely but found to be lacking the right stuff. The recipe for business success is often seen as formulaic: a good idea mixed with a generous dollop of demand and a healthy serving of cash. But all of these essentials are hugely variable and can be influenced or obliterated by market swings. As such, business owners and managers are constantly seeking answers to the following questions: “How can I recessionproof my business?” “How do I make sure that if the world trips up again, my company doesn’t become an also ran?” Passion and determination are vital – businesses can’t survive without them. But neither can a business rely on just passion and determination to get them through the tough times. Indeed, too much passion and determination can be harmful. In a country like the UAE that cultivated perennial optimism, entrepreneurs and business leaders alike caught the ‘go bigger, go faster’ bug. A stampede of enthusiasm drew people to live, work and invest. Much of this was positive, but the excesses caused some of the problems that we saw come home to roost during the dark

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days of the credit crunch. Many of the most vocal cheerleaders during the boom were the first to fail when the music stopped. Of course, many companies survived and are now in pole position to benefit from the inevitable economic upturn. We have much to learn from them. Did the survivors see or sense what at the time was unthinkable – that the rally was unsustainable – and take evasive action? Or was their endurance built on the sound, sensible fundamentals by which they ran their business, allowing them to benefit from the upside whilst keeping a healthy cushion for rainy days? Richard talks to some of the most determined and focused leaders in town to unlock the secrets of survival, and find out how their businesses made it through the tough times. In the wake of countless failed businesses that were riding the global wave of prosperity, Richard’s nononsense, investigative journalism gets to the bottom of how some of Dubai’s best businesses shone under pressure. I could see early into the crisis, not long after Wall Street behemoth Bear Stearns had crumpled under its huge debt burden and Lehman Brothers was threatening to follow suit, that Richard was taking an overlykeen interest in the ‘what makes the difference between success and failure’ debate. As the economic climate persisted, the cathartic need for a look at how things might have been done differently in businesses became an irresistible topic for Richard’s first venture into authoring.Sink or Swimis a book that takes a look at global failure through the eyes of successful people and companies in the UAE. It combines personal testimonies with empirical evidence, giving us all a view of how to sow the seeds of enduring evolution, just in case the unthinkable happens again.

Steve Williams CEO, Gulf Finance

INTRODUCTION

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We really shouldn’t need a book like this today. The lessons from the Dubai downturn could and should have been learned long before it happened – perhaps centuries before. Dubai’s speculative, propertyfuelled boom and bust followed pretty much the same pattern as dozens of other economic bubbles in history. From the Dutch Tulip Mania of 1637 through to the dot.com rally at the turn of the millennium, we’d been there before so many times. Let’s recap what we already knew about bubbles, long before Dubai real estate became hot property:  Don’t jump on the bandwagon   If you must jump on the bandwagon, whatever you do don’t  borrow money  Don’t think ‘this time it’s different’ and expect it to last   Be prepared for a sudden and painful economic downturn  when it finally bursts As I say, these lessons could have been written after the eighteenth century South Sea bubble; the nineteenth century US railroad bubble; the roaring 1920s stock market bubble; and many others. Sadly, so many entrepreneurs and managers in Dubai ignored these seemingly obvious warnings during the frenzied boom years between 2004 and 2008. And their mistakes had serious consequences, as countless companies collapsed when the bubble inevitably burst. Wealthy people lost fortunes, ordinary people lost jobs, and the economy lost much of the momentum that had catapulted Dubai into the premier league of global cities.