An investment expert, Emi Membere-Otaji has identified ‘new threats’ to businesses in Nigeria and suggested how chief executive officers (CEOs) can navigate the thorns to keep their businesses afloat.
Membere-Otaji, in a virtual lecture he delivered recently at the Nigerian Institute Management (NIM), mentioned sabotage and wars, insecurity and insurgency, unstable government policies (fiscal and monetary), which disrupt business operations, as well as the volatile oil prices, given that the economy is largely dependent on petrol-dollars.
He also pointed to what he called turbulence from internal factors, including fraud, failures in leadership or strategy, or product/services problems. He described turbulence in business as the sudden, unexpected, significant, and cascading commotion in the business environment, adding that this does not respect the organisation’s status in the industry, size, strategic plan, managerial experience, or brand identity.
Membere-Otaji, who is the national vice president of the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), said it was important for CEOs to be conscious that they operate in a volatile, uncertain, complex and ambiguous environment that could throw up some “irrational demands.”
Giving instances of business disruptions, Membere-Otaji mentioned new products and services that displaced others, border policies that killed textile manufacturing activities, and the relocation of businesses from some regions due to kidnapping and violence.
The expert submitted that devastating effect on business occurs principally because of failure to recognise the importance of good risk management and corporate governance practices.
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On how to walk through these challenges, he said business managers in times of turbulence, must embrace good leadership skills, be ready to make hard choices, do the unexpected and sometimes the seemingly impossible, even in the face of opposition.
He warned that the strategies that would help today’s businesses are not plans and aspirations, but agility and capabilities.
Giving further tips, on what he called leadership and corporate capabilities, the expert said the ability of a company to survive turbulence would depend on the ability to learn fast, adapt and respond to changes and uncertainties, thus adding value no matter what comes along.
Quoting Bill Gates, he said building a corporate culture of agility keeps organisations stronger and makes them survive shocks.
“As business leaders with a thorough understanding of the complexities, disruptions, and turbulence that our organisations are facing, it is pertinent to ensure a top-notch culture of agility in the system.”
The former president of Port Harcourt Chamber of Commerce and Industry, urged business leaders to be visible and ever prepared, adding “there’s no better time to exhibit transformational leadership than in times of crisis.”
He also advised CEOs to re-strategise, noting that the first step for companies that have a risk management plan is to analyse the situation and its impacts and activate their “business continuity plan”.
The management expert posited that businesses that do not have a continuity plan, must review the situation and activate a crisis management strategy and take far-reaching decisions to stay afloat.
