Bill Clarke

Jamaica Bankers' Association president William 'Bill' Clarke has predicted that by the year 2010, companies operating in mature markets will be searching for new growth opportunities in today's emerging economies (including those in Asia and the Americas), and is urging Jamaicans in the business and financial sectors to develop the mindset of operating in a global marketplace.

Citing a 2006 report from international financial powerhouse, Deloitte Touche Tomatsu (DTT), Clarke, who is also president and CEO of Scotia Bank Jamaica, argued that local managers must develop "peripheral vision" to keep up with the opportunities and challenges in the rapidly globalising world that come from increased competition, especially from companies outside our own borders.

"Companies which have peripheral vision keep a constant watch on developments in sectors that are unrelated to their core business," Clarke told the ninth presentation ceremony of MBA graduates of the Manchester Business School Worldwide (operated locally by the Jamaica Institute of Bankers) at the Jamaica Pegasus Hotel in Kingston on Saturday.

"They understand what is happening in the economy, in their community and in the international arena," he said. "They also have their finger on the pulse of their customers and they act decisively on weak signals before they become threats or lost opportunities. That is the kind of company you must create and lead if you are to succeed in the globalised environment of 2010."

He said that in recent years Jamaica has been experiencing a period of interest rates at unprecedented lows and financial services institutions are operating with shrinking margins. This, he said, has resulted in operational efficiencies becoming a matter of urgency for the sector.

"The DTT report states that this will be even more of a priority in 2010. Companies will be forced to find ways of improving efficiencies and economies of scale. Self-service channels such as Internet banking, ABMs and kiosks will become crucial to business success," the Scotia Bank boss said.

"However, companies may be able to use the savings from increased efficiencies to fund premium services for high value customers," he added. "The challenge for managers in all commercial sectors is to identify the needs and desires and develop products and services to satisfy them. This will require research, creativity and innovative thinking."

But Clarke cautioned that no matter how creative one may be, the competition usually finds a way to match your product, sometimes even before it is formally launched, as there is "no such thing as a secret in the corporate world, especially in our small Caribbean societies".

Clarke told the graduates that DTT analysts suggest that the successful 2010 company must also focus on strengthening customer relationships through improved customer service and processes, as research has shown that it is much more difficult to replicate excellent customer service and high-quality processes.

"According to DTT, service and process enhancements reduce complexity and cost. They create top-line growth and profitability on the bottom line. And financial markets reward companies that achieve top-line growth," Clarke said.

"Therefore, the quality of customer service that a business offers is going to be the key differentiator in the next few years," he said. "The companies that succeed in 2010 will be those that have mastered the art of retaining their existing customers and deepening the share of their wallet. Complacency has no place in this culture because complacency leads to stagnation."

The DTT report also predicts that the leading financial companies are likely to be the most sophisticated users of technology on the planet, highlighting that already the world's top 25 financial firms spend US$50 billion on technology each year.

According to the 2005 Economic and Social Survey of Jamaica, the country has been ranked 54th by the 2005 Global IT report, of 115 countries for e-readiness. Trinidad and Tobago is ranked 74th.

"The imperative for Caribbean countries is to identify information technology solutions which will improve processes and service and result in greater efficiencies," said Clarke. "The region's proximity to the US makes this quest both easier and urgent as technology is more accessible and the threat from competition is more imminent."

While congratulating the graduating class, Clarke said that the business leader of 2010 must be more than technically competent.

"The 2010 leader must have excellent communication skills so that you can inspire your team to follow and participate in a meaningful way in business development," he said. "You will also have to put things in place that gather information from the political, economic, social and technological environments. And finally, you must master the art of change management because change is a given, not an option."

-reidt@jamaicaobserver.com

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