Dato’ Dr Nirmala Menon: Gearing for the Upside in a Downturn
Dato’ Dr Nirmala Menon captured the attention of the 2009 Women’s Summit audience at the Sime Darby Convention Centre recently with her polished and assured presentation style when she gave her perspectives on Gearing for the Upside in a Downturn.
A medical doctor by training, Dr Nirmala entered insurance in order to gain more time with her young child. However, her affinity to the role was obvious and she steadily rose to her current position as CEO for ING. Sharing from her personal experience, she said that a crisis can be a stepping stone to success. The problems and crises we face often force us to make necessary and beneficial changes in life. In inviting her audience to find an “opportunity in crisis” or an “upside in downturn”, she believed that people still had the choice to either react in a positive or negative manner.
When she took up her position as CEO at ING in 2007, Dr Nirmala was immediately forced to contend with the recession which began in late-2007. Expansionary policies, fuelled by both demand and greed have contributed to the financial turbulence that the world is now facing. Naturally the financial sector, being at the forefront of the matter, has borne the brunt of the now full-blown global economic crisis.
When there is a crisis within the financial sector, there is erosion of trust among consumers, and this has certainly been the case in Malaysia. The current economic climate makes present complex challenges to management. And yet, even in times like these, it is still possible to see opportunities in a crisis.
Dr Nirmala’s perspective is that life is about making choices. She shared that a number of factors determine how we perceive problems and choices and gender is one of them. Research written up in the Harvard Business Review showed that women were more likely than men to see problems in a crisis situation. A survey also showed that only 22 percent of women saw opportunities in a crisis compared to 31 percent of men.
Women need to be more conscious of this tendency for them to be negative, and make a decision to change the way they respond to information and to practice being more positive about the situations they are facing.
Dr Nirmala shared some of advice and insights for dealing with the current economic climate. Most credible research indicates that it will likely be another six to eight quarters before the financial markets begin to show improvement, thus the challenge for businesses is to weather the storm. Her personal prescription for Malaysian businesses seeking to do this is as follows:
1. Know your core business
• Some businesses do not focus on their core business and go off on a tangent by doing what is trendy. She reminded them of the importance of protecting their core business at all costs.
• Understand your customers - for example, are they willing to pay or do they buy based on price alone? Do they switch easily or can you depend on their loyalty? What more can be done to cultivate this?
2. Manage cash flow
• In times of crisis, cash is king. Businesses must exercise prudence and take care not to over-leverage and over-extend themselves.
• Have a clear vision & strategy - develop a manifesto to ensure that your business stays on track.
3. Engage employees
• The single most important management decision is for employers to empower their employees.
• Employers should involve their team in brainstorming and charting their company’s growth strategies. They should meet regularly to discuss their approaches, and all staff should feel that they can make a useful contribution.
4. Ownership
• Employees must have ownership of the directions and changes taking place in the workplace.
• Keep lines of communication open to inform how decisions will affect everyone in the organisation. Involve everyone to build strong sense of belonging.
5. Risk management
• Organisations must have robust risk management strategies and be sure to cover business interests and operational costs.
“Vision without action is dreaming, action without vision is random activity; but vision and action together can change the world.” - Joel Barker
Dr Nirmala concluded by pointing out that women are unique and have their own strengths. She encouraged them to develop their own personal brand and not to be caught up in stereotypes imposed onto them by others. To do this, they also need to show their capacity for creativity and hard work, and their ability to learn and adapt.
Click on pic to view Gallery of 2009 Speakers and Panelists
