Be Paranoid About Healthy Growth

Be Paranoid About Healthy Growth
By Mike Teng

John Chambers, CEO of Cisco Systems says that he possesses a healthy paranoia. He
is paranoid that Cisco may grow too far from its customers, partners and employees.
Andy Grove of Intel first wrote about paranoia in the book, Only the paranoid will
survive. Company should not just be paranoid about survival, it should also be paranoid
about healthy growth.

John Chambers grew Cisco from 1995 to become a super growth engine, which fuelled
the burgeoning demand for computer networking. Its sales revenues grew from $2.2
billion in 1995 to $18.9 billion in 2000. The profits grew from $0.84 billion in 1998 to
$4.3 billion in 2000. Without Cisco routers, there would be no World Wide Web. By
year 2000, over 75 percent of all Internet traffic traveled over Cisco products and the
future appeared bright and expected to grow from 275 million to 1 billion by 2005.

However late in 2000, the US economy went sour and by early 2001, the high-growth
Cisco System was in trouble. It was forced to write off billions of stocks and laid off
7,900 employees. The stock fell and Cisco Systems fell from its pedestal of growth.
Chambers was always mindful that Ciscos bubble might burst, although he was taken by
surprise too by the sudden turn in Ciscos fortunes. Faster than most other CEOs under
similar circumstances, Chambers restructured Cisco by putting stress on profit and cash
flow performance. He put emphasis on focus, execution, productivity and taking only
calculated risks. The company did subsequently show signs of improvements.

Another example is Donald Trumps corporate empire. He was acquiring and growing
very rapidly from real estate, hotel, casino and airlines. When the real estate market
crashed in New Year in the late 1980s, Trump was almost bankrupt. Like the proverbial
Phoenix, he emerged from the ashes and became a comeback kid in the 1990s. Both John
Chambers and Donald Trump had learnt a bitter lesson that a company must emphasise
on getting healthy first before growth and expansion.

The 1980s and 1990s were decades of growth by merger and acquisition. However, the
successes had been far and few. Also, companies that went through growth by merger
and acquisition were highly geared and paid dearly for their overburdened debt situation.
As a result many are still digesting their acquisition or prevented from further
acquisitions. In the 2000s, growth will be more organic rather than through pure
acquisitions. Companies will plan more for real growth through internal development
and expansion. Branson has risen to this challenge by building his businesses through
organic growth rather than acquisition. Growing and starting new companies enables him
to stretch his people and he enjoys providing opportunity for his employees. At the risk
of overplaying his image, this strategy fits his concept of the organisational family, one
that grows by progeny rather than by adoption.

One also ought to be paranoid if the company is not growing. The market, the staff, the
creditors and the shareholders demand growth. The bank interests, inflation, wage
increase, returns on investments are all expected to grow and therefore the company must
also grow correspondingly. Chances are that if you are not growing, your competitors are
growing at your expense. Companies need to have sustainable growth, otherwise they
are dying. Similarly, a person who totally retires is heading for the grave and need to
grow mentally in order not to become senile.

Even in so-called mature and competitive industries, companies are growing. For
instance, Dell Computers is still growing despite the very tough and mature personal
computer market. Many old companies such as Coke, Proctor and Gamble and Gillette
are still growing in the markets with hundreds of similar brands. Growth is always
possible no matter what the age is. Thomas Alva Edison deemed mentally slow by his
teachers patented a total of 1,033 inventions! His work spanned a lifetime and grew with
age, with the first patent issued at age twenty-one, his last at age eighty-one. For both
corporate and individual, the lesson is never to stop growing.

However, top line growth per se is useless, as evidenced in the demise of many dot.com
companies in the world and construction companies in Singapore. If the growth is not
accompanied by attention to costs, productivity and efficient use of resources then the
growth is not sustainable and can spell more troubles.

However, companies need to have a healthy and balanced view of growth. If growth is
done artificially to please the stock market and shareholders, then it cannot sustain. This
happens to companies that go on an acquisition binge and they get indigestion. Therefore,
one should target for healthy growth, which is based on a solid foundation

http://www.corporateturnaroundexpert.com

Dr Mike Teng (DBA, MBA, BEng, FIMechE, FIEE, CEng, PEng, FCMI, FCIM, SMCS) is the author of the best-selling business book Corporate Turnaround: Nursing a sick company back to health, in 2002. In 2006, he authored another book entitled, Corporate Wellness: 101 Principles in Turnaround and Transformation. Dr Teng is widely recognized as a turnaround CEO in Asia by the news media. He has 27 years of experience in corporate responsibilities in the Asia Pacific region. Of these, he held Chief Executive Officers positions for 17 years in multi-national, local and publicly listed companies. He led in the successful turnaround of several troubled companies. He is currently the Managing Director of a business advisory firm, Corporate Turnaround Centre Pte Ltd (http://www.corporateturnaroundcentre.com). Dr Teng was the President of the Marketing Institute of Singapore (2000 2004), the national body representing some 5000 individual and corporate marketing professionals in Singapore

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Corporate Retreats: Key to a Healthy Mind and Body in the Workplace

Corporate Retreats: Key to a Healthy Mind and Body in the Workplace
By Sheridan Hammond

A corporate retreat is an excellent opportunity for any business from conferences to workshops, or simply for escapism of the hectic, stressful nature of the workplace. A crucial advantage, however, is that relationships and communication are maintained amongst employees/employers which allows for solid team bonding. Corporate retreats will not only benefit peoples lives, but will also improve the way work is approached on a daily basis.



It is never too late to renew and rejuvenate the workplace with the experience of a corporate retreat. There are a diverse range of retreats available, which can often comprise of a weekend getaway or a week-long adventure, depending on the company. Activities are involved and can include those such as: yoga, water sports, outdoor activities, team bonding exercises, and food preparation workshops.



Team building should be a priority for any organisation, no matter the size. Strong interpersonal relationships and communication skills are vital for the workplace. Corporate retreats allow great qualities to shine through. Individuals will exceed their expectations of themselves and fellow workmates. The internal environment of an organisation needs to be strengthened so that all external activities are effective.



Retreats are designed so that participants leave with a wide range of invaluable skills and lessons to take home and apply to their lives. The journey of a corporate retreat is an innovative form of involving employees and providing them with a foundation for strong teamwork. A retreat allows for an employee incentive, as a reward for their hard work and dedicated efforts.



Company Advantages



A corporate retreat will assist in team building by strengthening employee-to-employer as well employee-to-employee relationships, communication, trust and acceptance. By participating in this experience, workplaces will no doubt benefit and receive a refreshed and energetic staff upon return to the office. Corporate retreats also increase performance and productivity, as well as assist in maintaining sound employee relations.



It is far better to maintain a content work environment otherwise morale will decrease, thus resulting in a depletion of productivity and work ethic. By providing an organisation with a corporate retreat, employers will be seen as proactive and willing to support the growth individuals as employees.
Employee Benefits



Individual employees will experience a general feeling of wellbeing and appreciation through the adventure of a corporate retreat. The relaxed environment will revitalise their work ethic and encourage motivation and passion, which will be transferable to the workplace. Good rapport should also develop: employee-to-employee and employee-to-employer.



Inspiration and dedication are key factors involved in developing and executing corporate retreats. Qualified instructors will help enhance the skills of any individual, regardless of what their area of expertise is. Absolutely anyone can enjoy a corporate retreat age, gender and ability are irrelevant. A corporate retreat is the ultimate incentive for any employee.



A final word



No matter the size or nature of the company, all will benefit from a corporate retreat. A refreshed and inspired workplace will always deliver 100% and beyond, in performance. Remember, a happy employee is most certainly a productive one.

Sheridan Hammond is the founder of Samudra - Surf & Yoga Retreats run in magnificent ocean settings in Australia and around the world. Sheridan and his staff run corporate retreats which are all about team building while experiencing a different culture, eating healthy foods and engaging in the intimate practice of yoga with new friends. For more information on Sheridan or Samudra, visit the website at http://www.samudra.com.au.

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